The Induced Innovation Hypothesis and Energy-Saving Technological Change
AbstractWe develop a methodology for testing Hick’s induced innovation hypothesis by estimating a product-characteristics model of energy-using consumer durables, augmenting the hypothesis to allow for the influence of government regulations. For the products we explored, the evidence suggests: (i) the rate of overall innovation was independent of energy prices and regulations, (ii) the direction of innovation was responsive to energy price changes for some products but not for others, (iii) energy price changes induced changes in the subset of technically feasible models that were offered for sale, (iv) this responsiveness increased substantially during the period after energy-efficiency product labeling was required, and (v) nonetheless, a sizeable portion of efficiency improvements were autonomous.
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Bibliographic InfoPaper provided by Resources For the Future in its series Discussion Papers with number dp-98-12-rev.
Date of creation: 01 Apr 1998
Date of revision:
Other versions of this item:
- Richard G. Newell & Adam B. Jaffe & Robert N. Stavins, 1999. "The Induced Innovation Hypothesis And Energy-Saving Technological Change," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 941-975, August.
- Richard G. Newell & Adam B. Jaffe & Robert N. Stavins, 1998. "The Induced Innovation Hypothesis and Energy-Saving Technological Change," NBER Working Papers 6437, National Bureau of Economic Research, Inc.
- NEP-ALL-2006-01-24 (All new papers)
- NEP-ENE-2006-01-24 (Energy Economics)
- NEP-INO-2006-01-24 (Innovation)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Durable Housing and Overall Trends in the Economy's Energy Efficiency
by Matthew E. Kahn in Environmental and Urban Economics on 2011-01-29 15:26:00
- Celebrating $4 Gas
by Matthew E. Kahn in HBR Blog Network on 2011-03-14 14:41:23
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